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What is a Digital Product? Learn how to Create & Sell Them

what is a digital product

Last updated on 27 October 2022

Although a product is popularly known as something physical that you can hold in your hands, it’s not quite the same when looking at a digital product. A digital product can be a variety of things but basically needs to be digital-based, not physical.

An encompassing definition is a product or service that has been software-enabled and can be utilized by human beings. Others might say that it’s a product that is in digital form or a product sold online that lacks physical form.

A digital product has a variety of terms, sometimes known as a Digital Asset and Digital Download. The digital product is all about the value it delivers. As long as it’s in a digital form and offers value, it can be defined as a digital product.

A quick explanation of a digital product

A digital product is simply a non-physical asset that can be sold digitally. This means it cannot be a real-life product, only a digital asset. Digital products include such things as – Software, Applications, eBooks, videos, photography, PDFs, Zip files, and much more.

Steps to creating a digital product

Digital products always start from an idea, then crafted into a digital asset. And, this follows different kinds of processes depending on what you’re offering to the user, but it always boils down to three steps.


You first have to come up with an idea and define the market to which you’ll be selling the idea. If not, you’ll have a product and no one to give it to. You can create a prototype to test the product against your target market during this step. It involves checking the buyer personas, including what they want and hate.

When starting, you need to make sure you have a sellable digital product. Over the years, I’ve noticed that it’s all about the product. If you have a good one, you will sell it, if you don’t, it won’t.

If you can’t find any digital product ideas, check this blog about 15 digital products to sell and how to sell them. It could spark some ideas. I would suggest finding some passions that you like and writing them down. Take a look at them and think to yourself, what could I do to make doing these easier? It’s always best to come up with an idea for the subject you love.

Research and set up a plan

Now that you have a prototype or idea, you need to base it on real-world data, this is where research comes in. Without knowing what the people want and giving it to them, you end up with an unmarketable product. So, set up a firm plan for your digital products and base it on research.

It will help if you find who your customer is. Know who you are wanting to sell it to. The main question is – does it solve a problem or give the customer benefits or convenience? If it does, then it’s a great start.


Now, you can design your digital product. After you market research and find something that’s missing in your industry, you will be able to make a digital product based on an idea you have.

Execute your plan and test the product quickly, as you might need to make some corrections. Once you’ve made a real-life digital product from the prototype that reflects your target audience, you can sell.

Digital products you can sell online

Whether you’re selling PDFs on Shopify or selling downloads on Etsy, there are different types of products you can sell online. Although selling software is the most popular, you don’t have to build an entire set of software, website, or application before selling digital products online.

You can sell eBooks, videos, audio, graphics, photography, digital art, courses, documents, tickets, and even professional services. Take a look at this guide to get inspiration for digital products.

Where can I sell digital products?

There are a lot of marketplaces and platforms to sell digital products in this day of age. All of them have advantages and disadvantages, but ultimately it depends on your product and what you choose.


This will help you build your own store and earn the most over any marketplace. You can learn how to sell digital products on Shopify here using our expert digital downloads app. Take a look at how our app can deliver your digital downloads in the best way possible.

The only small downside to having a Shopify store is that you are in control of your own traffic, meaning there’s no search volume unless you work on SEO, social or ads. But in my opinion, the pros outway the cons here by far. Shopify is the best place to sell your digital products.

Marketplaces have the advantage over this by giving you instant potential traffic, but it comes at a big cost. Most marketplaces are just rented space meaning you cannot customise your pages. They have their own rules, they take large commissions, sometimes up to 50%, they can remove you if you fail to abide by their rules and much more. If you have your own store, you are in full control.

Check out the article from Teckers on the best digital downloads apps.

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Etsy is a huge marketplace, well known for vendors selling custom made products. They allow you to sell digital products on here, but you can only sell digital products under 20MB of file size. This is what you need to deal with on marketplaces like Etsy.

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You can sell digital products on Envato but I would highly advise against it. They take up to 50% commission and need to be exclusive and can only sell on there, nowhere else! Their whole submission process is the worst I’ve ever used, like really bad. But it seems to work for a lot of sellers so I just wanted to mention them.

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What are the digital touchpoints?

When creating a digital product, you aim to set a service or product touchpoints. This is the interface where the user interacts with the product. The two most popular types of touchpoints are web and mobile, as these are two main ways we can access a digital product.

But, many platforms can operate on both touchpoints. You can have the Instagram website and the mobile app, offering the same product and similar functionality. Today, digital touchpoints are moving towards conversational interfaces like smart speaker devices and virtual assistants.

Last Take

Digital products continue to evolve continuously as you update them and learn more about consumers’ needs and wants. It’s not like a physical product that is shipped involving many more costs and problems in the workflow.

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